Gold prices climbed above $2,000 an ounce on Friday to trade at their highest since early August, as the Israel-Hamas war raised worries about the potential spread of violence in the Middle East, leading investors to seek safety in the precious metal.
“Gold has been strengthened primarily by safe haven flows in the last two weeks amid the geopolitical tensions in the Middle East,” Fawad Razaqzada, market analyst at City Index and FOREX.com, in market commentary. The 10-year U.S. Treasury yield BX:TMUBMUSD10Y has fallen to 4.901%, down from 5.171% Thursday. Thursday’s level was the third-highest of this year.On Thursday, Powell told the Economic Club of New York that inflation is still too high and “a few months of good data” are only the beginning of what is needed to bring inflation back to 2%. He also said the Fed was “attentive” to tighter financial conditions caused by the recent run-up in longer-term bond yields.